Shafaq News- Baghdad

Disruptions in the Strait of Hormuz are reshaping Gulf steel trade and driving up costs for Iraq, which relies heavily on imported iron and construction materials, according to a report by S&P Global.

Citing Steel Giant Commodities CEO Taysir Jaafar, the report noted that steel shipments once routed through ports inside the Hormuz corridor are now being redirected to alternative hubs such as Sohar, Fujairah, and Jeddah, after restrictions and congestion affected major ports including Umm Qasr, Jebel Ali, and Dammam.

Read more: Iraq's oil lifeline is blocked: Here is why the crisis runs deeper than Hormuz

Freight costs have surged since the crisis began, with transport rates for steel coils to Fujairah and Sohar rising to $70–90 per tonne, compared with $35–40 before the disruptions, alongside additional port and war-risk charges.

“Iraq faces greater challenges than other regional markets because of long overland transport routes and limited trucking capacity,” Jaafar told S&P Global, noting that Chinese hot-rolled coil prices climbed from around $460 per tonne before the crisis to more than $510.

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